Shiba Inu price could surge 90% as burn rate increases

The Shiba Inu price has entered a bear market, falling over 20% from this week’s high as the recent crypto bull run fades.

Shiba Inu (SHIB), the second largest meme coin in cryptocurrency, was trading at $0.000024 on Friday, November 15, as most cryptocurrencies fell. Bitcoin (BTC) remains below $90,000 as the last bull run stalled.

Still, there are signs that SHIB price will recover and possibly retest this week’s high of $0.00003045. For example, data from Shibburn shows that Shiba Inu burn rate has increased by 115% in the last 24 hours.

More than 16.1 million coins have been burned, meaning 410 trillion have been burned since its inception, and the circulating supply has reached 583 trillion tokens. Token burns occur when cryptocurrencies are moved to an inaccessible address, reducing the number of those in circulation.

Another potential catalyst for Shiba Inu price is the increase in the total number of addresses in Shibarium to over 1.89 million. If the trend continues to rise, there is a possibility that these addresses will increase to 2 million in the coming months.

Meanwhile, the number of transactions completed on Shibarium has increased to over 509 million in the last few months. This performance is notable because Shibarium is Shiba Inu’s layer-2 blockchain network. A portion of the BONE tokens collected in fees are moved to SHIB and burned.

Analysts think Shiba Inu price is on the rise

Crypto analysts think SHIB price is on the rise. A popular analyst known as SHIB Bezos stated in his X post that the cryptocurrency is about to go parabolic. In his view, the cryptocurrency often moves parabolically, then consolidates and bounces back again. He expects the next parabolic move to take it to a record high.

The daily chart below makes the bullish situation more evident. The Shiba Inu has now formed a golden cross as the 50-day and 200-day moving averages form a golden cross pattern. In most periods, this pattern usually leads to greater profits.

Shiba Inu price chart | source: crypto.news

SHIB also created a cup and handle pattern in which the existing retract is part of the handle section. In most periods, this pattern usually leads to a strong uptrend.

In this case, if it breaks above the upper part of the cup formation, further upward movement will be confirmed. In such a case, the cryptocurrency could rise to its year-to-date high of $0.000045, which is approximately 90% above the current level.